If a bank has deposits totaling 200000 and their reserve, Business Economics

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If a bank has deposits totaling 200000 and their reserve

1. If a bank has deposits totaling $200,000, and their reserve requirement is 10%, what is the total on their required reserves?

2. If that bank had total reserves equaling $50,000, what are their excess reserves?

3. What will banks likely do with their excess reserves? Explain how this relates to the federal funds rate.

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Business Economics: If a bank has deposits totaling 200000 and their reserve

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Business Economics: If a bank has deposits totaling 200000 and their reserve

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